Reps amend CBN Act to limit governor’s power

The House of Representatives has read for a second time, a bill proposing to prohibit the appointment of serving Managing Directors /Chief Executive Officer as well as the Executive-Directors of commercial banks as Governor or Deputy Governor of the Central Bank of Nigeria (CBN).

The bill seeks amendment of Section 9 of the Principal Act by inserting a new sub-section to the effect that former CEOs and Executive Directors of commercials banks will not be eligible for appointment into CBN, until after five years their exit from the bank.

The bill entitled: “A Bill for an Act to Amend the Central Bank of Nigeria Act, Cap. C4, Laws of the Federation of Nigeria, 2004, was sponsored by Hon. Binta Bello.

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In her debate, Bello explained that the bill is aimed at ensuring transparency and further promote the bank’s efficiency in the discharge of its statutory duties.

“The lacuna in the current legal framework and regulatory framework in the CBN Act necessitated this amendment. There is dire need to fill the lacunea in the regulatory framework of the Central Bank.

“There is also need for the reinforcement of the CBN Act for efficient and effective management of our economy”, the lawmaker noted.

The bill which also proposes that a person other than the Governor be made chairman of the board of the apex bank, seeks to divest the board of the powers of determining and fixing its own salaries and allowances and the powers of considering and approving the annual budget of the apex bank.

It further proposes the empowerment of the bank’s board to prepare and send a budget to the president, latest by September 30, for onward transmission to the National Assembly for approval.

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